Friday, January 11th 2008
New York Begins Investigation of Intel
New York state launched a formal investigation of Intel Corp on Thursday, to determine if the world's No. 1 chipmaker broke state and U.S. antitrust laws to squeeze out its main rival, Advanced Micro Devices (AMD). New York state Attorney General Andrew Cuomo said his office issued a broad subpoena seeking information about whether Intel coerced customers to exclude AMD from the worldwide market for microprocessors. "Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," Cuomo said in a statement. Intel spokesman Chuck Mulloy confirmed the company had received the subpoena and would "work very hard" to comply with the subpoena, in keeping with its normal practice. "We believe our business practices are lawful and that the microprocessor market is competitive and is functioning as one would expect a competitive market to function," Mulloy said. AMD said it had been contacted by Cuomo's office. "I can confirm that we have received a subpoena, too," said spokesman Drew Prairie.
Source:
Reuters
31 Comments on New York Begins Investigation of Intel
Even if Intel is found guilty of it, it won't help AMD much at all later on, unless the ruling decrees that Intel fork over x amount to AMD to make up for lost potential revenues - that would be a blessing for them. Only time will tell, though.
In the meantime, I hope this case serves as warning to all the other corporations out there - Intel may not have made it into the list of the 100 biggest corporations in 07, but they're a name that everyone knows. If both Intel and MS gets slapped for this type of competition within 10 years, we should see the market as a whole start to straighten out a bit . . .
I do think, though, that if Intel weren't stacking the deck as they were, AMD would almost definitely be in a better financial position than they are now, as they would've seen more revenue coming through the door - which they probably would've put towards R&D.
Post num 100.